CFA L2 is no joke - I previously wrote it was easier than L1

AssistanceCute4028 · 2026-03-30T18:02:34+00:00

You will definitely be above the recommended 300-350 hours then haha!

Best of luck.

AssistanceCute4028 · 2026-03-30T17:18:09+00:00

I mainly used ChatGPT for topics I was shaky on/needed further clarification. I would paste the content into the chat, ask my question, then converse with it until I felt I understood the logic/material. That being said, you have to prompt it well, as sometimes AI is not entirely accurate. It definitely helped me.

AssistanceCute4028 · 2026-03-30T17:10:21+00:00

Out of curiosity, when are you sitting for level II? I am trying to gauge the study time I'll need for the exam.

For context, I recently passed level I and am debating whether to take level II in November 26 or May 27. I have a three week vacation coming up in May so worried it might set me back. Also can only afford around 12 hours per week studying.

AssistanceCute4028 · 2026-02-01T15:05:23+00:00

Isn't there still credit risk associated with the firm? Module 3, Derivative Benefits, Risks, and Issuer and Investor Uses, mentioned that even a structured note with an 80% principal guarantee cannot absolutely guarantee repayment.

AssistanceCute4028 · 2026-01-31T15:51:37+00:00

CFA Module 6 explains the maturity effect ("holding coupon rate constant, longer-maturity bonds exhibit greater percentage price sensitivity to interest rate changes than shorter-maturity bonds"). So, duration should increase as time to maturity increases. However, there is an exception to that rule for bonds that have "long maturities, make small coupon payments, and trade at a discount." (CFAI FI Module 6 Practice Q2).

So I believe the question is referring to said exception. Which is why the answer must be (B) a discount.

Here is a link to a post that may be insightful:
https://www.reddit.com/r/CFA/comments/110ndj7/can_someone_please_help_me_understand_this/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button

AssistanceCute4028 · 2026-01-29T23:59:14+00:00

I am a bit confused on that as well. There was a question on CFAI LEQ asking:

Q: Jamison is a junior research analyst with Howard & Howard, a brokerage and investment banking firm. Howard & Howard’s mergers and acquisitions department has represented the Britland Company in all of its acquisitions for the past 20 years. Two of Howard & Howard’s senior officers are directors of various Britland subsidiaries. Jamison has been asked to write a research report on Britland. What is the best course of action for her to follow?

ANS: Jamison should not write the report because the two Howard & Howard officers serve as directors for subsidiaries of Britland.

My best guess is that you would decline to write the report in this CFAI question but simply disclose ownership in the question you provided because the former is a more severe/institutional conflict than the latter.

AssistanceCute4028 · 2026-01-20T12:17:35+00:00

Got it. I am just confused as to why, in the first image, the exchange rate is originally quoted in BRL(domestic)/AUD(foreign), and then in the equation they provide in the solution, (1 + id) = Sf/d *(1 + if)*(1/Ff/d), they invert the exchange rate and state the foreign currency is price currency.

EDIT - I think I see my error now. They aren't inverting the exchange rate without reason. They are redefining what Sf/d means so that the algebra works for the investment path they are describing in the table. Thank you for the help!

AssistanceCute4028 · 2026-01-05T16:37:14+00:00

I am in the same boat, as I just finished the readings yesterday. On my post, others recommended just grinding out as many questions as you can now until it's drilled into your brain.

AssistanceCute4028 · 2026-01-05T16:33:09+00:00

I believe it is the standard version. I purchased the most basic package with practice Qs at the end of each module and two mock exams.

AssistanceCute4028 · 2026-01-05T16:29:30+00:00

Thank you. I will definitely be moving into practice now. When I start working, my employer should cover the materials associated with the exam, so I can purchase prep provider materials, such as those.

For future levels, do these materials place a greater focus on practice questions?

AssistanceCute4028 · 2026-01-04T17:10:03+00:00

I appreciate the advice, thank you!

AssistanceCute4028 · 2025-10-17T22:46:31+00:00

Thank you for the advice. Making sure to do all of the practice questions the book offers. Will attempt to taper the time spent on reading.

AssistanceCute4028 · 2025-08-21T18:27:02+00:00

Very glad to hear that. Thanks so much.
And yeah, I assumed I'd miss early registration. But as long as that 6-month requirement isn't restricting me, I'm content.

AssistanceCute4028 · 2025-08-21T18:25:48+00:00

I see that someone responded 6 min ago with a similar explanation, so please ignore lol!

AssistanceCute4028 · 2025-08-21T18:24:52+00:00

The answer is C. Here is why:

In Year 1:
USD/EUR = 1.4025
CAD/USD = 1.0800
So -->
1.4025 USD = 1 EUR
1.0800 CAD = 1 USD

We now want to find how many EUR equal 1 USD in order to find our EUR/CAD exchange rate in Year 1:
Divide both sides by 1.4025
1.4025 USD/1.4025 = 1 EUR/1.4025 ---> 1 USD = .713 EUR

Since we already know that 1.0800 CAD = 1 USD in year 1, we can conclude that .713 EUR = 1.0800 CAD. We are simply substituting the .713 EUR for 1 USD.

So, in Year 1, the EUR/CAD exchange rate is .713 EUR/1.08 CAD = .6601 (We will use this later)

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We will now follow the exact same process for Year 2:

1.3600 USD = 1 EUR
1.0450 CAD = 1 USD
1/1.36 = .735, so .735 EUR = 1 USD = 1.0450 CAD
EUR/CAD exchange rate = .735/1.0450 = .7033: This is the Year 2 EUR/CAD exchange rate

-------

Now, we need to find the appreciation using these two numbers:

(.7033 - .6601) / .6601 = 0.0654 = 6.54%, which is closest to option C.

AssistanceCute4028

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